Donald Trump’s lawsuit backfires as filing reveals accounts closed over money-laundering fears

Newly released court documents have revealed that President Donald Trump was removed as a customer by Capital One after the bank carried out an anti-money laundering investigation. The disclosure has also sparked fresh questions about efforts by acting Attorney General Todd Blanche to protect Trump and his business interests from future legal action.

According to court documents filed by Capital One on July 31, this is the first time a bank has publicly linked the closure of Trump’s accounts to concerns over anti-money laundering rules. The filing says the decision was based on an extensive internal review carried out by the bank’s anti-money laundering team, not because of Trump’s political views or public profile.

The timing of the disclosure has attracted attention because just two days later, acting Attorney General Todd Blanche reportedly signed an agreement that critics say could limit future investigations involving Trump, his family, and their business empire.

The agreement reportedly prevents the Internal Revenue Service (IRS) from carrying out audits that could lead to enforcement actions or prosecutions involving Trump, his sons, and their business entities over conduct that took place before May 2026.

National security writer Marcy Wheeler pointed to the close timing of the two events in a post on X. She argued that on Friday, Capital One revealed Trump had been removed as a customer because of anti-money laundering concerns, and by Sunday, the acting Attorney General had strengthened protections that could prevent tax-related investigations from leading to criminal charges.

For years, Trump has insisted that his bank accounts were closed because of political discrimination following the January 6 Capitol riot. He repeatedly claimed that major financial institutions were targeting conservatives and used that argument to help explain why his family became increasingly involved in cryptocurrency and digital finance.

However, Capital One’s court filing directly challenges that version of events.

The bank stated that Trump’s accounts were closed because of anti-money laundering concerns following months of detailed analysis and a careful internal review carried out under its banking policies and federal regulatory guidance.

The filing also explains that Capital One never publicly disclosed the reasons for closing the accounts. According to the bank, the information only became public because Trump decided to file a lawsuit, forcing the bank to explain its decision in court.

The documents state that the bank kept both its decision and the internal review process confidential for around five years and never publicly discussed why the relationship with Trump ended.

Todd Blanche, who previously served as Donald Trump’s personal lawyer before becoming acting Attorney General, signed the reported IRS settlement. According to reports, the agreement covers Trump, members of his family, and several of their business entities, limiting the IRS from pursuing audits or enforcement actions related to conduct before May 2026.

NPR also reported that Senator John Cornyn reached an agreement with the Justice Department regarding the settlement. A spokesperson for Cornyn said the written agreement makes clear that the settlement applies only to the named plaintiffs, including President Trump and the IRS, and is intended to define the scope of the arrangement.

The developments have drawn strong criticism from some political commentators.

Commentator Amanda Carpenter questioned whether it was simply a coincidence that Capital One’s court filing revealed anti-money laundering concerns while, around the same time, Blanche signed an agreement that could shield the Trump family from certain IRS audits.

She also argued that giving the Trump family protection from audits that could potentially lead to prosecution raises serious concerns about equal treatment under the law, describing the arrangement as an unacceptable form of protection.

The issue is likely to receive even more attention because the Senate Judiciary Committee is expected to vote on Todd Blanche’s confirmation, placing his actions and the reported IRS agreement under increased public and political scrutiny.